Malaysia’s competitiveness in the United States market is not expected to be affected by the new 10% tariff imposed on its exports, according to Investment, Trade and Industry Minister Datuk Seri Johari Ghani.
Johari said the tariff rate imposed on Malaysian goods was among the lowest compared with other exporting nations, allowing the country to maintain its position as a competitive trade partner for the US market.
He noted that 16 other countries were also subjected to a 10% tariff, while most economies faced a higher rate of 12.5%.
“From an export perspective, every country exporting to the US is affected by tariffs, and Malaysia is only facing a 10% tariff. Therefore, our position in the US market remains more or less the same,” he said.
Johari was speaking to reporters after officiating the National Chamber of Commerce and Industry of Malaysia’s 50th annual general meeting.
He said the government’s main concern was the possibility of Malaysia being imposed with a much higher tariff rate compared with competing countries.
The United States introduced the 10% tariff on almost all Malaysian exports following allegations that Malaysia had failed to effectively enforce restrictions on imports linked to forced labour.
The move came after the US Trade Representative launched an investigation in March involving 60 economies over their measures to prevent forced labour-related imports.
Malaysia secured a lower tariff rate due to its commitments to strengthen forced labour import restrictions under a reciprocal trade agreement with the US, which has yet to be ratified.
Johari said Malaysia remains committed to improving its laws related to forced labour and will take necessary steps within two years after the agreement is officially ratified.
“Once the agreement is ratified, Malaysia will have two years to amend existing laws or introduce new legislation,” he said.
